How to adjust W-4s for married filing jointly, 2 full time jobs and a side gig

[chanchez1025]

My husband and I both have full time jobs with W-4s for each (my full time job brings in more income than his). I also have a side gig with a third W-4 (this brings in an extra ~30k a year, but is the lowest income out of the three jobs). We have filed jointly for the past couple of years and have owed a lot on our taxes since the addition of my side gig, but have not updated anything on our W-4s since filing separately. We are pretty stumped on where to start.

[marctu]

Based upon the fact pattern of the question, you have filed Married Filing Jointly ("MFJ"), but potentially are moving in 2025 to Married Filing Separately ("MFS") , and none of the three W-4s (two for you and one for your husband) have ever been updated.   For visibility this is the W-4 

Whether you choose to continue filing as MFJ or move to MFS you want to fill out Multiple Jobs Worksheet.  You can also use this calculator: W-4 Calculator 

Keep in mind that in Step 3 of the Multiple Jobs Worksheet you need to adjust the pay periods in Step 3 by the remaining pay periods for 2025, since we are five months into the year.

All the best,

Marc T.

TurboTax Live Tax Expert

28 Years of Experience Helping Clients

[chanchez1025]

No, we plan to continue to file jointly unless there is some benefit to married filing separately? Can you give me some more details on the multiple jobs worksheet? 

[Emack_EA]

To properly adjust W-4s for married filling jointly with two jobs and a side gigs, you need to make sure your combined withholding covers all your tax liability, including the extra tax owed on the side gig which usually doesn't withhold taxes automatically to both the IRS and state.

Use the IRS Withholding Estimator Tool (https://www.irs.gov/individuals/tax-withholding-estimator)

You'll need:

1-Paystubs from both W-2 jobs

2-Estimated net income from side gig (after expenses).

Number of dependents

3- Whether you itemize or take the standard deduction

Fill out the W-4 for both W2s by entering basic information,  enter number of W2, claim your dependents $2000 per child, enter investment, rental income, dividend etc., enter standard or itemize deduction and finally enter extra withholding to cover the side gig using the IRS link above.

For the side gig you may also choose to make quarterly estimated tax payment for both the IRS and the state tax authority.

Please note, only one spouse should claim dependents on the W-4. Extra withholding is better than estimated payments if you want it automated.

It is important to recheck your W-4s anytime your income changes.

[marctu]

Thank you for the follow up answer.  With three jobs you will fill out Line 2 using the tables on page 4 of the link I sent.  It will involve the annual wages of all three jobs.   You will take the annual wages from the highest to the lowest and have to add at the lowest two together in two places.   Step Three is where you need to adjust the pay periods from the highest paying job for the remainder of the year.  

The worksheet is not too hard once you know what the annual wages are.  

Thank you for the follow up question @chanchez1025 

All the best,

Marc T.

TurboTax Live Tax Expert

JD, MTax

28 Years of Experience Helping Clients

[chanchez1025]

Last question. While my side gig has pulled in ~30k in previous years, part of that income is commission-based. Does this change anything?

[marctu]

Yes and no.   It could be more or less, which makes it way more difficult to have a perfect or even good annual amount.   I would probably err on the high side, so that you are not in an owe position at the end of the year.   You can always do just the two jobs in the W-4 and then make estimated tax payments on the side gig quarterly, but I personally would build in a higher number for the annual income for the side gig.   

Good follow up question @chanchez1025 

Marc T.

TurboTax Live  Tax Expert

28 Years of Experience Helping Clients